The Bureau of Labor Statistics released its November jobs, unemployment, and wages report and it delivered continued good news for workers about the state of the labor market and the economy. A few topline takeaways:
1. Headline Numbers: the unemployment rate was 3.7% (unchanged from October). The economy created 263,000 jobs (essentially the same as October). Wages increased 0.6% month-over-month (highest since 10/21) and 5.1% year-over-year.
2. Trend Lines: There is a lot of stability in this report. As with the JOLTS and weekly unemployment claims reports, we don't see signs of the labor market or worker power weakening. Robust job creation and strong wage increases continue.
3. Participation: Labor force participation essentially stayed flat as about 360,000 workers left the labor market, although the number of those workers who want a job decreased meaningfully. This is a puzzle that requires some additional study.
4. Jobs by Industry: Jobs grew across a wide range of industries, but most of the growth came in the service sector and government: leisure and hospitality, health care, and other services. JOLTS and other reports suggested reason for concern about manufacturing, but jobs grew there as well.
5. Wages: The wages increase in November is striking: 0.6% month-over-month. This means workers' wages this year are keeping up with "core" inflation and falling only slightly behind prices including food and energy. A smaller inflation bite.
